Which Division of IB will help most if my dream is to start my own PE firm?

<p>I was wondering working at which IB division will prepare me best for eventually start my own private equity firm? If you think it's unrealistic to start a private equity firm then may be my quesiton will be: working at which IB divison will prepare me best for starting my own company (any company, from hedge fund to a fast food chain) eventually? Thank you so much!</p>

<p>Well that’s a bit of a broad question. In terms of preparing you to work for P/E and then, perhaps open your own shop - the analytical skill set will best be served in Leveraged Finance, but the network and contacts, as well as coverage environment might best be served in Financial Sponsors. If your Lev Fin team does a lot of their own sourcing and is far stronger/more prestigious than your Sponsors, then go for Lev Fin. If your Sponsors group does all of its own modeling, and has a strong brand name, then go for Sponsors.</p>

<p>Beyond that, for going into an industry role and opening your own company in general, I would say either M&A (strictly for the applicable analytical skill set) or whichever industry you are interested in. If you like fast food - consumer and retail, if you like some sort of tech, then Technology, renewable energy, then either Energy and Power or Project Finance, etc. </p>

<p>Feel free to PM me if you have any further questions.</p>

<p>IBanker</p>

<p>also, industry experience is very key to a successful pe shop. Keep in mind that businesses won’t pay up millions just to get the advice of ex-ibankers who only know about number crunching on excel sheets. many PE partners i know have years of experience in their related experience, whether it be aerospace & defense, auto, etc.</p>

<p>Just to add a bit of information: there are many PE firms and hedge funds that focus on investing in distressed companies. Restructuring would be the group to take you down that route.</p>

<p>I was reading an article (posted below), that you may want to check out. From what I read, it sounds like Private wealth management could be a good option for you. Maybe somebody more familiar with PWM could chime in.</p>

<p>[Career</a> Perspective: Private Wealth Management ? Entrepreneurs at Investment Banks - Opinions](<a href=“http://media.www.themsj.com/media/storage/paper207/news/2000/10/09/Opinions/Career.Perspective.Private.Wealth.Management.Entrepreneurs.At.Investment.Banks-4792.shtml]Career”>http://media.www.themsj.com/media/storage/paper207/news/2000/10/09/Opinions/Career.Perspective.Private.Wealth.Management.Entrepreneurs.At.Investment.Banks-4792.shtml)</p>

<p>You have to be kidding. Wealth mgmt has nothing to do with being a private equity guy. It’s actually clear on the other side. You want to be in Financial Institutions groups at the banks- you want to be on the part of banking where the customer is the private equity firm.</p>

<p>^ That’s the Sponsors group, not FIG. FIG deals with large commercial finance institutions like commercial banks, insurance companies, wealth managers, etc. Financial Sponsors deals with PE and VC firms.</p>

<p>merchant banking?</p>

<p>Sorry, I’ve never been a banker and not feeling too sorry about not knowing the insider acronyms.</p>

<p>M&A within Investment Banking would be the best division to prepare you for Private Equity</p>

<p>What your firm’s top IBD group is</p>

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<p>Or sponsors or LevFin</p>

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<p>And that’s why you gave misinformation</p>

<p>^ Tee hee!</p>

<p>I’ve never done IB either but I’ve been involved in M&A transactions and I am currently engaging in VC consulting. I agree with giants92. Generally anything that will get you experience in corporate finance and capital markets, accounting (Specifically dealing with shareholder value management) and business consulting. You should become a generalist but really understand management and leadership, marketing, and operations/project management. Some knowledge of Politics and economics helps. Really the best skills are learning how to listen to people to understand their situation and needs; networking; and being able to know your limits so you can ask for help.</p>

<p>Networking is paramount.</p>